Another positive day for Piazza Affari and the European stock exchanges, also supported by Wall Street in the wake of the inflation data. The Ftse Mib closes trading up by 0.8% in points, with Mps (+3.9%) in evidence, followed by Bper (+2.2%) and Pirelli (+1.8%), while they retreat Cnh (-1%), Diasorin (-0.6%) and Prysmian (-0.5%).
U.S. producer prices rose 0.1 percent in June year-on-year, the slowest pace in nearly three years, according to today’s report. The data adds to yesterday’s data on consumer prices, fueling hopes of a true disinflationary process and an early conclusion to the Fed’s monetary tightening cycle, even if the 25 bp rate hike in July should not be discussion.
Now the focus is shifting above all to the quarterly reports of the banks due out tomorrow. Meanwhile, Delta Air Lines reported better-than-expected results in the recent quarter and PepsiCo raised its revenue and earnings estimates.
Industrial production in the euro area in May was below expectations (+0.2% on a monthly basis, -2.2% on an annual basis), while the GDP of the United Kingdom recorded a decline of 0.1% between April and May, better than forecasts.
In Europe, the minutes of the ECB were released, from which it emerged that a 50 basis point increase in rates was also discussed at the June meeting.
On Forex, the euro/dollar rose again to 1.119 and the dollar/yen fell further to 138.1, with the greenback weak after the inflation data. Among the raw materials, oil (Brent) is confirmed above 80 dollars a barrel, also supported by the closure of a field in Libya. Meanwhile, the IEA has lowered its estimates of demand for 2023.
On bonds, yields are still down with the two-year Treasury at 4.65% and the ten-year at 3.79%. Btp-Bund spread below 165 basis points, with the Italian 10-year bond at 4.14%.